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  • NZ Funds Covid-19 Update 10

    14th May, 2020
  • NZ Funds' 10th Covid-19 update - Cash is not king

    • Global share markets have stabilised at levels well above their March 2020 lows.
    • NZ Funds believes markets will now trade in a range of plus or minus 15% for the remainder of the year.
    • Do not expect a strong rally or a sharp sell-off.
    • Do expect a large increase in government support as countries announce further stimuli.
    • NZ Funds' clients are likely to be better off remaining invested rather than trying to time markets.
    • Two themes to be aware of are: US-China trade war and inflation pressures.
    • 2-3% inflation with low interest rates means the after-tax returns from cash and term deposits has a significant wealth impact for retired investors.
    • "If you think [cash] is safe, you're looking t it wrong - it's a sure losing strategy" - Ray Dalio.
    • NZ Funds retains clients' long-term exposure to share markets and continues to add gold and inflation protected US Government bonds.

    Click on the link below for the full update: